OrganiMax Files Final Approval of $1.1 Million Financing
Vancouver, February 23, 2021 - OrganiMax Nutrient Corp. (TSXV: KMAX) ("OrganiMax" or "the Company") is pleased to announce that it has filed documents with the TSX Venture Exchange (the "Exchange") for final approval of its increased private placement financing, previously announced February 10, 2021, for gross proceeds of $1.1 million.
Brandon Rook, CEO comments, "I would like to thank Eric Sprott and Peter Brown for investing a significant percentage of the overall financing into OrganiMax. With this early-stage financing, and the exercise of warrants that is currently underway, the company finds itself in a strong position financially to move forward its due diligence and following that, the Phase 1 brownfields exploration and development program for its flagship Government Gulch project in the Silver Valley, Idaho."
Key investment highlights of the project include;
The Government Gulch Silver project comprise 403 acres of patented lode claims; 5 historic mines and highly prospective unexplored areas.
No Federal permitting required; permitting with the State of Idaho is straightforward with patented claims.
Modern systematic exploration and drilling has never been applied to the project.
Two major mines (Bunker Hill and Page) located adjacent and contiguous to the project at both the west and east boundaries historically mined into the Government Gulch project area.
The Page Mine sourced ore grade mill feed from Government Gulch for 21 years but never mined deeper than 1200 feet below elevation; significantly, the Page Mine was developed to the 3400-foot level.
The other 4 mines at Government Gulch produced ore from near surface to 200 feet below surface.
All previously mined areas remain open at depth and along strike - the geology of the Silver Valley is known for vein structures trending deeply if not cut-off by faulting (the adjacent Bunker Hill mined to 5,800 feet below surface and Hecla's Lucky Friday Mine is mining today 10,000+ feet below surface).
No pre-existing royalties.
A 100-year detailed map folio from Government Gulch, the Page Mine and Bunker Hill Mine will be incorporated into a 3-D geological model that will add significant value to future exploration and development of the project.
Despite the project being located between two prolific past producing mining properties, the project has remained unavailable for exploration and development over the past 80 years due to claim boundary issues between Bunker Hill Mining and ASARCO (Page mine), as well as the subsequent transfer of the property to the EPA and the closure of the area for mining in the late 1970's.
For more detailed information of the project, please click the following link: www.organimax.com/government-gulch-presentation
On receipt of Exchange approval, the Company will issue 5.5 million units, with each unit being comprised of one common share in the capital of the Company and one half of a common share purchase warrant, each full warrant entitling the holder to purchase an additional common share of the Company at a price of $0.30 per share at any time within two years of the date of issuance. All securities to be issued under this private placement will be subject to a four- month resale restriction.
No finders' fees or commissions will be payable with the financing.
Net proceeds of this private placement are for general working capital purposes, due diligence of the Government Gulch project, brownfields exploration and development of the Government Gulch project, and to maintain its lithium - sulphate of potash (Li-SOP) project in Mexico.
The technical content of this press release has been reviewed and approved by Timothy Mosey, B.Sc., M.Sc., SME, a Qualified Person to the Company.
About OrganiMax Nutrient Corp. (KMAX.V) Lithium-Sulphate of Potash (SOP) project in Mexico:
OrganiMax Nutrient Corp. has a 100%-owned lithium and potassium bearing salar complex of mineral concessions in the Central Mexican Plateau located in the states of Zacatecas, and San Luis Potosi. Regional geophysical work has indicated that the depths of the salar basins may be much greater than previously thought, making the salars highly prospective for large brine aquifers to be discovered at depth. The Company is targeting Sulfate of Potash (SOP) and Lithium Carbonate (LCE) and boron for both the domestic and international markets.
The Company has announced a maiden sediment mineral resource estimate (MRE) of both lithium and potassium at its three salars. Highlights include:
120 million tonnes (Mt) of Inferred Mineral Resources grading 4.6% potassium (K) and 380 ppm lithium (Li);
A continuous high-lithium portion of La Salada salar containing 7 Mt grading 1,490 ppm Li;
A contained 12.3 million tonnes (Mt) of Sulfate of Potash (SOP) and 243,000 tonnes of lithium carbonate equivalent (LCE);
Sampling is restricted to 5 metre depths in most areas therefore there is good exploration potential to increase the Mineral Resource at depth and also extending the sampling to the edge of the salar basins where sampling has not taken place;
Geophysical surveys completed suggest there is potential for additional similar layers of potassium or lithium enriched material to be found under the current pitting/drilling;
Recent regional geophysical work has indicated that the depths of the salar basins may be much greater than previously thought, making the salars highly prospective for large brine aquifers to be discovered at depth.
On behalf of the board of directors of OrganiMax Nutrient Corp.,
Brandon Rook, President and Chief Executive Officer.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."
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